Gentoo Media Inc · OMXSTO:G2M
Gentoo Media — Gaming Innovation Group — Q4 2020 Earnings Presentation
30 slides from Gentoo Media's earnings presentation, Feb 23, 2021
Slide 1: GiG Q4 2020 Interim Report
GiG Q4 2020 -— Gaming Innovation Group Inc. Interim Report — 23 Feb 2021
Slide 2: Today's Presenters
Q4 2020 Interim Report Today’s Presenters Richard Brown Tore Formo CEO Group CFO 2
Slide 3: iGaming solutions based on innovative technology
Q4 2020 Interim Report iGaming solutions based on innovative technology GiG focusing strategy on ambition to become global Tier 1 B2B provider. Our strategy is centered on two customer focused business areas, supported by our group ambition for top performance and operational excellence Platform S
Slide 4: GiG in brief
GiG in brief Mission “To drive sustainable growth and profitability of our partners through product innovation, scalable technology and quality of service.” Dual-listed on Oslo Børs and at Nasdaq Stockholm 460 Employees Over 25 primary countries targeted by Media assets 10 Global Platform Licenses
Slide 5: 2020 a Transformative year for GiG
Q4 2020 Interim Report 2020 a Transformative year for GiG Strategic Focus Future growth Operational Covid-19 ● Became a fully focused ● Ramped up Platform ● Business Restructuring ● Protection of staff B2B company sales completed ● Business continuity ● De-leverage business ● Expanded and ● Comp
Slide 6: 2019 vs 2020
Q4 2020 Interim Report 2019 vs 2020 Revenues (MEUR EBITDA MEUR EBITDA margin (normalised) 2020 21% 2019 2019 2020 8% Revenues Revenues norm. EBITDA 43% 19% 212% 6
Slide 7: Key takeaways Q4 2020
Q4 2020 Interim Report Key takeaways Q4 2020 ● Continued positive development with significant YoY growth, both revenues and EBITDA ● Signed four new agreements for platform provision in the quarter, total of 14 for 2020 ● Media experienced positive developments in the quarter, finishing off with
Slide 8: Head figures development
Q4 2020 Interim Report Head figures development Revenues (MEUR EBITDA MEUR Revenues Revenues norm. EBITDA 66% Y/Y 38% Y/Y 4431% Y/Y 4% Q/Q 1% Q/Q 29% Q/Q 8
Slide 9: EBIT performance
Q4 2020 Interim Report Q42020 EBITDA to EBIT MEUR EBIT performance 4.1 -2.8 ● Marginal EBIT loss in the quarter of €0.1 6.8 and marked improvement of €1.5m (91% QoQ ● GiG currently amortises affiliate SEO/domain assets over 8 1.4 -1.5 years, a non-comparable practice to peers which define
Slide 10: Strategic Update
Q4 2020 Interim Report Strategic Update 10
Slide 11: Positioned to capitalise on projected growth in regulated markets
Q4 2020 Interim Report Positioned to capitalise on projected growth in regulated markets GiG is well positioned via its Platform and Media business units to capitalize on the growth in the in the industry by positioning itself in high barrier to entry re-regulating and regulating markets where dri
Slide 12: New contracts signed
Q4 Q3 2020 Interim Report New contracts signed Mill of Magic / Grupo Slots HoT CasinoWin TipWin Slotbox Admirāļu PlayStar German facing Le Grand SuperSeven Media Group Casumo brand Argentina BetGenius L. America Hungary Germany Ireland Klubs US operator Skopje Q320 Q420 Q121 • Signed Slotbox, f
Slide 13: Client integration timeline
Q4 Q3 2020 Interim Report Client integration timeline • SaaS contracts generate long term and • Long-term contracts with average initial sustainable revenue source term of more than 4 years • Ramp period from contract signing to launch, • Average annual contract values followed by operator revenue
Slide 14: GiG's core strengths are positioning us to capture our target market
Q4 2020 Interim Report GiG’s core strengths are positioning us to capture our target market GiG’s Strengths ● Platform: providing Casino, Sportsbook and Data technology to Operators globally as well as full Managed Services capability ● End to End product and service solutions ● Media: successful
Slide 15: Business Update
Q4 2020 Interim Report Business Update 15
Slide 16: Platform Services
Q4 2020 Interim Report Platform Services Revenue & EBITDA MEUR Revenue Platform Services EBITDA ● Normalised revenues for Platform Services were €4.9m (4.2 in Q4 2020, a 19% increase YoY ● Platform Services had positive EBITDA for the quarter, ended at €0.2m (-1.4, a 111% improvement YoY ● Sig
Slide 17: Platform Services
Q4 2020 Interim Report Platform Services Brands on the platform White Labels Platform Services SaaS Integration pipeline ● GiG’s platform is licensed in 10 jurisdictions, with 7 more in the integration pipeline ● 2 new brands went live in Q4 ● 15 brands are in integration phase for launch ● 76% of
Slide 18: Media Services
Q4 2020 Interim Report Media Services Revenue & EBITDA MEUR Revenue Media Services EBITDA ● Media Services continued its positive development in Q4 2020, finishing off the year with an all-time-high in revenues in December. Revenues were €9.0m (7.5, a 20% increase YoY and 5% QoQ ● Paid media co
Slide 19: Sports Betting Services
Q4 2020 Interim Report Sports Betting Services Revenue & EBITDA MEUR Revenue EBITDA Sports Betting Services ● The restructuring of Sports Betting Services was completed in the fourth quarter, resulting in a 78% YoY reduction in operating expenses ● Thus, EBITDA ended at €0.3m (-1.8, a €1.5 mil
Slide 20: Events after the quarter & summary
Q4 2020 Interim Report Events after the quarter & summary 20
Slide 21: Update after the quarter
Q4 2020 Interim Report Update after the quarter ● Signed a new long term customer onto the platform for the US market with first state roll out in New Jersey ● Signed with established German facing online operator to launch new brand into market ● Sales pipeline remains strong ● Media delivered AT
Slide 22: GiG's Long-term Financial targets
Q4 2020 Interim Report GiG’s Long-term Financial targets Growth Profitability Leverage To deliver annual double digit To achieve an EBITDA margin Cash generated from the organic revenue growth in excess of 40% by 2025 business will be used to lower leverage ratio while pursuing growth opportunitie
Slide 23: Summary
Q4 2020 Interim Report Summary ● GiG delivered significant year-over-year growth in both revenue and EBITDA ● Signed four new agreements in the quarter - securing geographical, regulated & diversified recurring future revenues - the sales pipeline is strong ● A leading and growing Platform busines
Slide 24: Q&A
Q4 2020 Interim Report Q&A 24
Slide 25: Appendix
Q4 2020 Interim Report Appendix 25
Slide 26: Largest shareholders: January 2021
Q4 2020 Interim Report Largest shareholders: 31 January 2021 GAMING INNOVATION GROUP INC. 1 7 669 052 8.5 % Myrlid AS 2 7 603 559 8.4 % Optimus Invest Limited 3 5 428 544 6.0 % Swedbank Robur Ny Teknik 4 4 896 125 5.4 % True Value Limited 5 3 187 302 3.5 % Hans Mikael Hansen 6 2 478 585 2.8 % Sten
Slide 27: Income Statement
Q4 2020 Interim Report Income Statement EUR 1 000 Unaudited) B2C included as discontinued operations Q4 2020 Q4 2019 2020 2019 Revenues 17 256 10 413 63 027 44 054 Cost of sales 830 165 2 967 906 Gross profit 16 426 10 248 60 060 43 148 Marketing expenses 4 222 1 073 14 937 5 272 Other operating
Slide 28: Balance Sheet
Q4 2020 Interim Report Balance Sheet EUR 1 000 (unaudited) B2C included as discontinued operations 31 Dec 2020 31 Dec 2019 Assets Goodwill 16 287 15 995 Intangibles assets 33 012 40 912 Deposits and other non-current assets 16 637 20 191 Total non-current assets 65 936 77 098 Prepaid and other cur
Slide 29: Cash Flow
Q4 2020 Interim Report Cash Flow In EUR 1 000 B2C included as discontinued operations Q4 2020 Q4 2019 2020 2019 Cash flow from operating activities 189 1 971 17 700 4 077 Cash flow used by investing activities 1 429 2 255 14 612 10 501 Cash flow from financing activities 7 302 872 25 178 7
Slide 30: Legal Disclaimer
Legal Disclaimer Gaming Innovation Group Inc. gives forecasts. Certain statements in this report presentation are forward-looking and the actual outcome may be materially different. In addition to the factors discussed, other factors could have an impact on actual outcomes. Such factors include deve
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